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please explain a, b and c (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows
please explain a, b and c
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A 1 $ 1,000 B $3,000 3,000 $5,000 2 5,000 2,000 3,000 3 3,000 (5,000) 4 (4,000) 3,000 (5,000) 5 4,000 5,000 15,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 14 percent? a. What is the present value of investment A at an annual discount rate of 14 percent? (Round to the nearest cent.)Step by Step Solution
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